IRS literally stole $16k - help

[RenoJay]

In 2014 my ex and I made several estimated tax payments from our joint account. We divorced in late 2014 and agreed that she would receive a refund and I'd pay a tax bill based on respective income. She got a note from the IRS that her refund was rejected. I wrote several letters showing the her refund was from our joint estimated tax payments. No response at all from Uncle Sam. So finally the ex and I visited the local IRS office. The guy there was friendly, acknowledged receipt of the letters and assured us the refund was coming, but to me and not to the ex. (No big deal; I'll write her a check when it arrives.). Our visit to the IRS office was two months ago. The refund 7 months late. We are talking $16,000, so it's not small potatoes.

What am I to do at this point?


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[gauss]

Was there a label on the letter that she received such as CP123 in the upper right hand corner?

Have you checked the "Where's my Refund" page of the IRS site for her refund and if so, what does it say?

-gauss

 

[RunningBum]

Contact your congressman. Sometimes they can cut through the red tape. Not sure about with the IRS though.

 

[RenoJay]

Gauss, thanks. The ex and I both just checked where's my refund and nothing. I don't believe there was a label on the letter, but I can't be sure as I don't have the original.

RunningBum: Good idea. I think I'll write a letter to my Congressman. You also made me realize I'm buddies with the former Lt. Gov. of my state. Maybe he has connections he can pull.

 

[redduck]

Was there a label on the letter that she received such as CP123 in the upper right hand corner? ...

-gauss

What does not having a label in the upper right hand corner indicate?

 

[Meadbh]

Not the IRS, but.....

I once was due a large refund from Revenue Canada. When it failed to arrive I asked my accountant to check. They had sent it to an old address. Funny, when they want me to pay more, they never have trouble finding me!

 

[pixelville]

I don't know the details of the written communications between you and IRS, but if they haven't sent you an amended return, how about you file amended returns with estimated payments (made jointly) showing up on your individual tax return (as opposed to your spouse, which is what I assume you had when it got rejected). Things normally get associated with the primary SSN on a tax return, so if your name has been first, that is what IRS allocated the estimated payments to.

If things don't get resolved by January, you can potentially check with a local AARP Tax Aide volunteer chapter for assistance. They normally have a more direct line to IRS. Some volunteer locations are very helpful others may not be.

It should ultimately get resolved. It is a matter of time. My understanding is that with budget cuts, IRS agents are swamped.

 

[gauss]

What does not having a label in the upper right hand corner indicate?

If we have the CP code then we can lookup exactly what the issue that the IRS had with the return. There are 10's if not 100's of variants if I recall.

-gauss

 

[pb4uski]

IIRC there is an ombudsman office for the IRS that would be a good place to start.

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[RockyMtn]

took me almost 18 months to get a measly $1077 from IRS on a amended return. At least they paid the interest.


It will get there sooner or later. Keep on them though.

 

[gauss]

I would also consider ordering, for both returns (yours and ex's) return transcripts, account transcripts, and 1099 transcripts for the tax year of interest.

There is no fee for this, but you can no longer do it online. You mail in a paper form and receive your transcripts, (on different days) via US Mail.

This may provide insight into what is going on.

The account transcript for your ex's return may be the most interesting in that it may show if she is due a refund (and payment has just been slow), vs if they have offset/denied her refund and consider the matter closed.

Keep in mind that I am a DIY guy -- YMMV.

If you wish to get professional help on this, I would consider contacting an Enrolled Agent (EA). In many states they are not allowed to advertise, so you may have to search to find them. I would be especially interested in one who has employment history with the IRS. They may be able to look at your case, understand what is going on, and know the most efficient way to resolve it.

-gauss